Robo-advisor launches new product to get financial advisors investing via Lending Club.
LendingRobot, the robo-advisor for marketplace lending, has launched a groundbreaking new product for connecting advisors to the Lending Club platform. The firm was initially set up to level the playing field for individual investors in marketplace lending. The newly launched, aptly-named “LendingRobot For Advisors” is said to merge the best of machine-based, high-speed investing with the supervision of registered investment advisors.
The new tool will allow advisors to manage all of their client accounts through a single dashboard (pictured below), while also taking advantage of LendingRobot’s algorithmic investment strategies. Advisors using the product can set unique risk profiles for each of their clients; LendingRobot’s algorithms will then allocate funds accordingly.
Millennium Trust will be providing custodial services for financial advisors who choose to take advantage of the new service, an essential ingredient in making the product work. Millennium Trust Company is a leader in providing custody services for both alternative and traditional assets, with $18.9 billion in assets under custody and more than 458,000 accounts under administration. As part of the new arrangement, client assets will remain secure in Millennium Trust’s custody.
LendingRobot For Advisors is being pitched as an attractive diversification channel in a low-interest rate environment. Clients can make use of the product for as little as $25.
“Today, if you are a financial advisor with 30 clients all interested in diversifying with peer lending, that task is next to impossible,” said LendingRobot CEO Emmanuel Marot (pictured above). “Even the best chess players today are a team of 2: a computer and a human. This is why we’ve created LendingRobot For Advisors – bringing together the expertise of human advisors with the automation and simplicity of our algorithms.”
LendingRobot For Advisors further deepens the relationship between the company and Lending Club – with the latter firm clearly having prioritised the shoring up of its retail funding base in the wake of waning investor demand in 2016.